Res 2004-190 - Laserfiche WebLink

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I I I ~,k 1,,'01 P9 04032587 OPR 2577 97 1. Payments in Lieu of Taxes. The Owner will make the following annual payments in lieu of the total ad valorem tax for the Property for the calendar year for which the payments are made: a. $80,297.00 to the City. b. $44,858.00 to the San Marcos Consolidated Independent School District (the "School District"). c. $13,848.00 to Hays County, Texas (the "County") for the special road district tax for so long as the County imposes the special road district tax on the Property and on properties similarly benefited by the road or roads. 2. Timing of Payments in Lieu of Taxes. The Owner will cause to be paid to the City, the County, and the School District the amounts set forth in Paragraph 1 on or before December 31 st of the year for which payments are due. In the initial year of the Agreement, for example, the payments will be due on or before December 31, 2004 in lieu of ad valorem taxes normally assessed by the entitles in 2004. Subject to the provisions of Paragraph 3, if after debt service payments are made, funds are available to pay the amounts due under the terms of this Agreement, and such payment is not made, interest will accrue on all such unpaid amounts at the rate of twelve percent (12%) per annum. 3. Subordination. In accordance with the underwriting gUIdelines for the financing of the Property, the payment amounts set forth in Paragraph 1 will be subordinated to all debt service and operating expenses of the Property. The parties recognize that this subordination will further enhance the economic viability of the Property and increase its ability to provide units of student housing to those students most in need. 4. Term of the Agreement. This Agreement WIll continue until the earlIer to occur of (a) the payment in full of all principal, premium, if any, and Interest on the Bonds, (b) the loss of the Exemption, or (c) a foreclosure sale (by power of sale or judicial proceedings) or a conveyance in lieu of such a foreclosure sale under any applicable Deed of Trust, at which time the Agreement will automatically terminate. During the term of this Agreement, this Agreement will be and is binding upon the Owner, all successors and assigns, and will be binding upon any successive purchaser of the Property, or any portion thereof, and the terms and provisions herein will be deemed to be restrictive covenants encumbering and running with the land, subject to the liens created by the financing documents executed in connection with the Property. 5. Owner's Board of Managers. Owner will have a five (5) member management board (the "Board of Managers") that will consist of one (1) member from a college or university in San Marcos, Texas, two (2) community members from Hays County, Texas, one (1) member from a Hays County faith based organization (all of the foregoing members being appointed by the City's governing body), and one (1) member selected by AHF. -2- pilot agreement.II-3-04.DOC